Lead Bank Scheme

On the basis of the recommendations of both the Gadgil Study Group and Banker's Committee (Nariman Committee), Reserve Bank of India introduced the "Lead Bank Scheme" towards the end of 1969. To enable banks to assume their lead role in an effective and systematic manner, all districts in the country, excepting the metropolitan cities of Mumbai, Kolkata, Chennai and certain Union Territories, were allotted among Public Sector Banks and a few Private Sector Banks.

The Lead Bank role is to act as a consortium leader for co-ordinating the efforts of all credit institutions in each of the allotted districts for expansion of branch banking facilities and for meeting the credit needs of the rural economy. For the preparation of District Credit Plans and monitoring their implementation, a Lead Bank Officer (LBO), now designated as Lead District Manager, was appointed in 1979.

Collection of various data from Scheduled Commercial Banks, Regional Rural Banks, Co-operative Banks, other banks and various government agencies. Monitoring the implementation of Annual Credit Plan and various Government Sponsored Schemes in the district. To raise the issues related to requisite infrastructure in order to achieve the Annual Credit Plan effectively. The Lead District Manager should also play a leading role in poverty alleviation programmes launched by the State or Central Government and in the preparation of the Annual Credit Plan for the district.

ACP (Annual Credit Plan): Preparation of the Annual Credit Plan is one of the most important assignments undertaken by the Lead Bank at the district level and by the State Level Bankers Committee at the state level. It has been an annual exercise since the introduction of the Lead Bank Scheme. It is an important document depicting the details of various economic activities being carried out in the district or state under different sectors such as Agriculture, MSE, Medium Enterprises, Education, Housing and Other Priority Sectors, along with the flow of credit by various banks and institutions to these sectors.